Political and economic relations between the EU and Chile are governed by the association agreement signed in 2002. The agreement was provisionally applied, including the trade provisions, in 2003, while the rest of the agreement has been implemented in 2005. A modernised Agreement should frame EU-Chile relations by encompassing political, security, sectorial cooperation and trade matters. The main objective is to deepen EU-Chile relations.
On trade matters, the implementation of the current agreement has led to a substantial increase in trade in goods and services between the EU and Chile: Chilean exports of agricultural/food products and services to the EU have nearly tripled while EU exports to Chile have doubled in most sectors. However, the existing agreement does not address some important trade and investment issues, such as specific provisions on investment, non-tariff barriers, intellectual property rights and some geographical indications and contributions to sustainable development.
By filling these gaps, a modernised EU-Chile association agreement will provide for the possibility of strengthening existing cooperation, lowering consumer prices, improving market access and creating job and growth opportunities. Throughout the negotiations, the EU will aim to ensure the highest levels of social, labour and environmental protections and promoting social justice and sustainable development.
On the basis of this mandate, the EU will be able to start negotiations with Chile. The first round of talks will begin on 16 November 2017.
